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tv   On the Move  Bloomberg  November 11, 2014 3:00am-4:01am EST

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of the promotion kicking off. beats expectations and had slower declines in revenue than many had expected. those are the things we are watching and futures are higher. and it looks like we are going to get a higher open with the market open. >> the yen is down and the next bigs your he is will shinzo abe go to the polls there? you ands it mean for brent oil with the relationship? should you be more worried about growth or think of it as a stimulus moment?
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european equities hit a record readyand he said to get and has seen all the hallmarks of the 1990's with a series of rolling crises in the market. ist is the big one and it relatively underway. things are slowing down and equity markets are trying to decide which way to go. what a great valuation. carolina will take you through the numbers in spain, italy, and turkey. they are spending 19 billion on networks. i will not say anymore. mark arden with the barge charts the price of iron ore is out
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and they say that it is going to come in the next quarter of next year. it is lower on the back of the number and there is nobody on the chart on twitter. let's have a look. and russiabout glue did better than expected. above-average is the word we're looking for. where should we go? and beat analysts estimates they gave up. mark did an interview with the ceo and is not doing well with opening prices here. the trade flows around the world are concerned about global economies in the developing
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markets that are slower than they thought. estimates andhe they look at the guidance. 1% ande is giving back this is the crossing of the market where you can see the prices ramped up. that is the bart chart. >> i love the bart chart. by atse 100 is higher third of 1%. geopolitics, david cameron ramped up against russia last night in a speech and opposes -- talked about the serious threat russian sanctions posed to europe. in this building, with the history shaped by the blitz, we
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should not need to be reminded the consequences of turning a blind eye when big countries bully smaller countries. statesman-like david cameron who had to make an early exit to the sword out criminal justice law. he wants the conversation about russia and it is still the european union pushing the like coral agenda. agenda anda domestic you would think that all of the u.k. is going through trouble. labor is having problems and losing to u.k. independence and b-dems have a problem. he will offer a referendum and, if you look at how many people
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are in favor, that number is 56% issue iny settle the the european union. getn the meantime, you will an amount of certainty in governments and the referendum. a hung parliament is never good for growth. the is why you will see meeting where they made the case for david cameron staying in the european union because it helps business. there will bethat some certainty about the policies. >> the business vote is going to be a key part of the election.
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talk in russia is in the european economy and there is a weaker europe. we can talk about russia all we want. and you havertant to be mindful of the domestic economy. i think there is a bit of noise and i have confidence that they are making a good move going after votes they are losing and offering a referendum to stay with in the european union. >> you and i can talk more after the break. here is a stock on the move, vodafone beat estimates and it is not as bad as expected. they listed profit guidance on .he margin and vodafone is up
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we had to the break with a quick picture of the markets. the dax is higher. andcan follow me on twitter we will be back in two minutes. ♪
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>> welcome back and this is on the move. we are streaming live on your tv. thes time to talk about
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chinese retailer. in 24 hours and they have topped the giant -- the figure this year. give us an update. how is it going? thatere are no questions the superlatives are spectacular. inig day for sales that was the year than last year and black friday. happened inales mobile and it appears that they are doing well. was $2 one they reported billion worth of transactions.
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pre-sales began in october and there are a couple of things going on. before the day and the transaction happens on the day. put 20% down.as i am not suggesting that they are cooking the books. keep in mind that they are making a show out of this and whatave to wonder percentage this cannibalizes sales before november 11. >> we are sitting here and talking about it. >> we year the interview with the chinese state television that says that he wants it -- and it ism interesting.
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details.ry short on it is something for investors to keep their eyes on. >> thank you very much. let's continue this conversation. this was a stock you were bullish on and it cap going higher and higher -- kept going higher and higher. alibaba is a micro play and i can tell you that i was in india and there was a huge amount of immensecoming that was and it is like you are going to reach the entire country through the play. and it ishappening
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reaching customers. >> is china where a lot of people are looking to go and do they leverage that? you look at the opportunities to invest and this is a stock to invest in. that people can invest into the shanghai market more than before. it will come up how much they can implement and there is a cap on that. >> let's go higher up the food chain. there is a frosty relationship between china and japan. we saw that in the ice cold
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handshake yesterday. werew bad the relations that even a handshake makes big news. >> it is fascinating. it is not a handshake. they turn away and they do not know where to look. these people are not friends. we have seen them smile before. i would point out that china and japan have to have a mutually beneficial relationship and i will give two points on that. has 300nese retailer shows an china and that majority from china. china needs japan's investment.
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>> where the handshake took japan i would ask whether needs china more than china it needs japan. morerhaps japan needs because of the minister and the people saying the relations would not improve. fan -- japan as look at growth opportunities and look at alibaba. become the richest first and in japan. and get grow the market a consumer base. >> how concerned were you about the rise of anti-japanese sentiment in china? is.aw this with his this businesses.
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>> it is not good for china because they need capital and if you read the press, there was a backroom chattering before the handshake happened. much they wanted to work together. >> i would look at the foreign exchange market and it looks like the dollar-yen. how long would china tolerate that? and thes strong japanese are feeding into the japan numbers. they are having a week japanese they should be the beneficiary. >> you are bullish on japan and
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we have seen a move with the trade that is back on. how high can they go this year in the remaining months? >> we should never ignore the floor and we did not get a full correction. there is a flow in the market and people are happy to take the equity in the bond market. i think the japanese yen weakens go further.will and the japanese are seeing earnings flowing in at the end of the year for
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equities. >> everyone is a bull on japan right now. >> i would not be worried about it. ands not very overvalued there is a distinct policy with government and the central banks. one should be worried about deflation and everyone trying to weaken. you see the weakness and the problem on hand. they are trying to do things and those are the consequences to think about. >> the currency war is at and we can talk about that more another time. we had to the break and let's check in on equities. and: 35 points. here is a stock we are watching. it is vodafone. it is up this morning. is at thevenue growth
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margins. we are back in two minutes. stay with us.
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>> welcome back to on the move. makernsumer product raised the adjusted earnings versus earlier goals and they said the performance was better than expected. toposed a threat performance. of the container line season earnings rising in the full year and they expect to up from theion, previous expectations. vodafone is the second biggest mobile company. , signs ofyde
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stabilization are not as bad as people thought. >> if you are looking at italy and spain, and it is horrid. progress, saysng the ceo. two thirds of the sales come from europe and they have posted decline in revenue and we're byrting to see the easing 4%. it is falling and still declining. not as bad as it has been. 77%re seeing traffic of year on year. they are spending phenomenal watching money and things. it is helping and increasing the
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profit target. they say they will be at the top of the range and are positive across the board. >> it is a marginal seen in the bottom and a bit of a technical adjustment. it is coming in over the bloomberg terminal and they are optimistic now. >> goldman sachs says they are upping the earnings and the rollout of the fourth-generation , in terms of wireless connectivity, is starting to make people buy more. that only 6%ying in europe use it and you could have 59% of people using it. when you are using it, it is great and you want to use your bundle. you see them before the numbers come out and they think the
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second quarter will be the points. what we have to worry about is taking the eye off of the ball. they're promising a turnaround and is stabilization with 19 billion pounds into improving net worth. africa was the area of growth before and they are starting to see profits having to be ground -- downgraded. because ofcool off consumer sentiment not being what it was. so me may have to see what they do to the emerging markets to improve. overall, this is a positive and they have beaten, in terms of the earnings. >> i cannot argue with that. when they have the numbers in spain and italy, the bar was pretty low. we had to break with a picture
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of the markets and vodafone is higher. will continue the discussion after the break. we will be back in two minutes.
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>> welcome back to on the move. we are at 30 minutes into the trading day. nowgs are shaping up right and the record highs for the u.s. and japan. andties are pushing higher it is that kind of day. >> sticking to a positive theme. it is currently trading higher. the second-biggest mobile company in the world manages to impress investors and they say
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that sales are stabilizing in europe and are not as bad as they were. vodafone is up four point 4%. another stock is driving higher this morning on the back of an interim earnings statement. if you are worried about the u.k. housing market, it continues to show good signs of recovery. pricesa dip in housing growthy say the pace of has been more healthy and sustainable. in thefidence is there market and they raised the profit forecast. see the glue beating analyst estimates and raising
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the profit forecast. they have warned that the geopolitical risks could hurt the numbers and russia ended up over contributing. and the it was up adjusted earnings will be better than that when they thought. becomingmic outlook is increasingly challenging. the three stocks to watch this morning. territory uncharted and closing on a record high. are betting on the u.s. economy withstanding global headwinds. you look at the close. david cameron raised the rhetoric in a worn-out -- a warning about russian aggression in the ukraine. areaid that sanctions
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morally right and in economic interest. >> the actions pose a grave danger to europe. with history shaped by the brits, we should not need to be reminded of the consequences of turning a blind eye when big countries bully smaller countries. >> obama has been in china and has talked about the strongest possible roles to protect the open internet. againstd a bag -- regulation and other companies have said there should be a ban on "fast lanes" for web traffic. closed -- cuthave interest rates and committed to buy assets in the effort to
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increase the balance sheet by one trillion euros. debate has a smaller decline in revenue and european markets shows signs of a recovery. we are going to talk about that .nd the principal analyst the market seems to like the numbers this morning and the organic revenue is not as ad. a little bit optimistic. are you? is thatthey are showing things are not as bad as the previous quarter and it does not necessarily mean that it is positive. you have the guidance improved improved on the bottom line of the guidance and the bottom side of the range of the guidance.
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if the picture was as good as the stock market seemed to suggest, they would have increased guidance. declining.d >> let's get a reality check and look at organic revenue. they paint an ugly picture. whether that is stabilization or not. countries like spain, italy, are declining. is not good enough to stabilize. they want to grow these businesses, especially where spain made investments in acquiring this. even the market is declining at
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a faster paints -- pace. overall, the view of the market says that things are not as bad as they used to be. andtill see negative signs many areas. >> let's talk about acquisitions. are they the target or the acquirer? inthey are the acquirer and acquiring mode. there are a couple of areas where they need work and, if you see with they have been doing servicests to provide and selling mobile stakes, they do that almost everywhere.
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not in the united kingdom. iey still need to work and think we're are talking about acquisitions or partnerships. andu.s. is a key market they will eventually need to going back into the u.s. market. lets you talk about acquisitions. you have names? >> everybody is speculating u.k. talktalk and vodafone as a provider of the services for consumers and the enterprise inns. >> how does the relationship of sky?- involve >> it is doing more than just
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.ommercials for vodafone the interesting thing about sky, the network is the video and vodafone is a video distribution company. andneed to have content content is king. whoever holds that demands a prize. bundling and the allegedly areh successful and have the effect on vodafone. it is important and the reality of who is gaining and which brands to consumers are by.
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that will determine who is the winner. gives principal analyst us a bit of a reality check about vodafone. we talked to moody's about the global outlook and find out why they expect no rebound in growth in the next two years. we will be back after this break.
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>> welcome back. i am jonathan ferro. growth because of the chinese slowdown and structural deficit weighing on the rest of the world. the senior vp is of credit policy. that is below the commission forecast. look at the low growth and the inflation running right now. countries, this is not good news. >> it is not. we are saying we cannot expect any rebound in growth and and is and it makesrden i it more difficult.
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probably stay high for another few years and they need to find another way to address the problem. is it based on the growth forecasts? significance in improvements. the eurozone is out of a recession. what we are saying is that the growth is not enough to bring unemployment down and move away from the stagnation. >> look at the debt burden of increasing and unemployment increasing. a look at the political with greece europe and france. how much of an issue is the political movements become a -- becoming when you have radical
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parties taking lead? >> we have seen stability and efforts for reform. you are right that there is a low growth and high unemployment that causes political problems. that would be a concern and we are not there yet. insulated tobeen the political and economic do you see signs of complacency where the countries are right now? >> this is the affect of easy monetary policy and throughout the world. have invested in this is gradually
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shifting and we see some of that year,ast year and this preparing for the tightening. difference with and hownd japan easing they will respond to that. >> can they fill the void in ?urope from what you have seen >> the response to the mandate is the case for the economy and theys been very clear that put measures towards easing policy. >> a look at some of the good news and look at gdp.
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skeptical may be at home and say this is like 2007. how different is this economy right now? >> we have seen some cleanup it ishout the economy and lower than 2007. the banking sector has been restructured and that is reassuring. it puts the economy in a to reverse theon shock from the outside. havelot of the electorate experienced austerity and have been running above that of france. is it austerity in name only?
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a runa recession, it is of deficits and unemployment benefits increase. and theret seen that has been retrenchment in public-sector spending. recovery in the good years. a look at the u.k. and the budget deficit. we are now experiencing budget growth. aroundget deficit is 4.5%. is that something you endorse? highlight is that the issues need a combination of restraints forme deficits with reforms to make
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investment employment more attractive with monetary policy. >> we had to the election-year and united kingdom and the budget deficit is going to be a big part of that and growth will be a big part of that. fueling thewdown economy here or not be a big heart of the election. see onh impact do you economy?- on the u.k. >> a weaker euro will have an impact and we may have seen some of that already. that may be difficult to say and we have the economy building strength. we see companies investing and
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withg throughout the year a good place to operate will stop >> we will even on a positive note with credit policy. thank you for joining us. coming up, president obama endorses net neutrality. if you have no idea what it is , join us afterns the break.
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>> welcome back. obama took a stance net neutrality and announced plans for the open internet. take a listen to this. i am asking the sec to reclassify service. -- for most americans, it is essential for everyday
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communication and life. >> >> what does it mean in plain english? >> it is asking to not have the slow lanes or fast lanes. it means that the company that laid the miles of line into your home cannot turn around and charge the netflix of the world a higher rates. the content providers are saying that this is a great deal. here who is not saying it is a great deal. the republicans and the cable companies. you saw this and at&t is .hreatening to sue the fcc here is ted cruz and what he had to say. neutrality iset obamacare for the internet and the internet should not be
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operated at the speed of government. president was on the side of fairness and they will have to implement the policy with the real challenges. >> you call it net neutrality and i have stopped listening. give me the numbers. >> is going to be hard to do it without saying net neutrality. i will say fast lane and slow lanes. isthe european parliament leaning towards not having fast lanes and slow lanes. said she wants to build more, without indicating whether she says they should be fast or slow. >> that is almost it. up at theis coming areof the hour and we
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joined by daija and. >> we will have a great show and have one of the best. is an art collector and a designer. don't think about it as a restaurant. think about it as a business. that is how we are going to approach it. we're going to talk about italian foods and things that are close to your heart. we'll talk about what is happening and the meetings taking place between obama and xi jinping. we will talk about the language of having dinner and analyze and discuss the relationship. >> that is exciting and i am interested in getting your perspective on it. >> mr. chairman last night -- you got it to be about something else. >> it is an interesting place right now. parties seem to be disintegrating at the moment and no one seems to have a
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handle on what the major parties stand for. i think the british situation is emblematic of that. the party cannot figure out what it wants to be and what it stands for. theof this is ahead of fascinating general election. i think it will get more interesting and what we are seeing is a taste of how interesting it will become. >> it will be fascinating and there is no getting away from the european union and business. the scottish referendum -- business needs to get involved early. otherwise, the impact would be disappointing. >> thank you very much. that is almost it. a look at a stock on the move. a look at vodafone. it is up. not as bad this morning.
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they listed guidance at the margins and the shares are rising with stocks higher across the board. have a good rest of the day. .
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>> singles a day. alibaba beat last years record for the biggest shopping event. >> diplomacy reset. president obama and xi jinping together. >> mr. obama takes a side on net neutrality and called for an open internet. what impact it will have on european businesses? ♪ >> good morning. you are watching "the pulse

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